New Business Owner Mistakes
In the January 13, 2014 edition of the Business News Daily, Chad Brooks wrote an article called “4 Big Mistakes New Business Owners Make”. Quoting other sources, the article goes on to say the four common mistakes made by new business owners are 1) comingling personal spending with business spending, 2) not properly classifying employees and independent contractors, 3) not processing or filing payroll taxes timely and correctly, and 4) attempting to handle their bookkeeping and preparing their own taxes. Too often, when we consult with business owners, they have already made several of these mistakes, if not all. Then they engage us to correct the problems caused by someone who did not understand their business or how to apply the current tax law to their situation.
A qualified CPA should be able to walk the new business owner through the quagmire of balancing the demands of business with the requirements of compliance. Your financial advisor should be more than someone who prepares a your tax return. Remember, credentials don’t always equate to qualification.